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No, they cannot. Contract law.
It's exactly as you said ... you were contracted to move freight from point A to point B, ideally without damage to the freight, but damage to the freight is neither here nor there.
Property damage is a matter for the law. The police need to be called if an equitable solution cannot be immediately worked out at the scene of the incident. Without a police report of alleged property damage your insurer is under no obligation to pay on your behalf.
By and large "Fly-by-Night Brokers Inc." are not the brightest people you will run into in life, and generally they have absolutely no knowledge or understanding of rules, regulations, and laws governing either the operation of a commercial motor vehicle, or any motor vehicle for that matter (regardless of whether or not they have a driver's license and own their own car), or the movement of freight.
Let's use a different example ... You are the president and CEO of American Widgets Inc. You are at home for the afternoon. However, you need some documents from the office. You call the office and ask Mary Jane Secretary to grab the papers, jump in her car, and deliver the papers to your house, which she does. When MJ Secretary leaves your house she puts the car in drive instead of reverse and goes through your garage door. Do you;
a) call the police to do a report so you can get your garage door fixed and MJ Secretary can get her car fixed under MJ's insurance policy, or
b) withhold MJ Secretary's paycheck until some unknown entity fixes your garage door?
This is clearly a police report/insurance claim situation. Absolutely no different than a driver damaging a shipper or receiver's dock.
Even if your driver's do not know this, your dispatchers should, and should make decisions appropriately.
It's why you carry PL & PD insurance. For those that may have forgotten, PD stands for PUBLIC DAMAGE.
Damage to freight is neither here nor there;
So, suppose you haul a load of very expensive widgets for a Fortune 500 company through a load broker. Your trailer leaks and all of these very expensive widgets are ruined beyond repair. You're facing a cargo claim of $1,000,000.00, and you only have coverage for $250,000.00. That means $750k is coming out of your pocket.
The receiver of the goods files a claim with you within the required time period, and follows the required rules. You have absolutely no defense so begrudgingly you agree to the claim and prepare to pay.
However "No-Brains Load Brokerage Inc." gets their nose into the situation and decrees they will not pay you for the transportation because you damaged the freight. What do you do?
So, me personally, I love brokers that put right in their contracts that in the event of a cargo claim they are going to withhold payment of your account. Thank you very much for contracting me out of having to pay cargo claims. You guys are the best
(Just be aware to never get in too deep with these brokers.)
Guess who the customer goes after civilly once the claim has passed the statute of limitations ... LOL
You, the unpaid carrier, are under no obligation to willingly support the load broker in their pending law suit.
It's exactly as you said ... you were contracted to move freight from point A to point B, ideally without damage to the freight, but damage to the freight is neither here nor there.
Property damage is a matter for the law. The police need to be called if an equitable solution cannot be immediately worked out at the scene of the incident. Without a police report of alleged property damage your insurer is under no obligation to pay on your behalf.
By and large "Fly-by-Night Brokers Inc." are not the brightest people you will run into in life, and generally they have absolutely no knowledge or understanding of rules, regulations, and laws governing either the operation of a commercial motor vehicle, or any motor vehicle for that matter (regardless of whether or not they have a driver's license and own their own car), or the movement of freight.
Let's use a different example ... You are the president and CEO of American Widgets Inc. You are at home for the afternoon. However, you need some documents from the office. You call the office and ask Mary Jane Secretary to grab the papers, jump in her car, and deliver the papers to your house, which she does. When MJ Secretary leaves your house she puts the car in drive instead of reverse and goes through your garage door. Do you;
a) call the police to do a report so you can get your garage door fixed and MJ Secretary can get her car fixed under MJ's insurance policy, or
b) withhold MJ Secretary's paycheck until some unknown entity fixes your garage door?
This is clearly a police report/insurance claim situation. Absolutely no different than a driver damaging a shipper or receiver's dock.
Even if your driver's do not know this, your dispatchers should, and should make decisions appropriately.
It's why you carry PL & PD insurance. For those that may have forgotten, PD stands for PUBLIC DAMAGE.
Damage to freight is neither here nor there;
Learn this. Understand this. Live by it.
In a cargo claim a carrier is under no obligation to pay the claim if they have not been paid for the transit of the goods.So, suppose you haul a load of very expensive widgets for a Fortune 500 company through a load broker. Your trailer leaks and all of these very expensive widgets are ruined beyond repair. You're facing a cargo claim of $1,000,000.00, and you only have coverage for $250,000.00. That means $750k is coming out of your pocket.
The receiver of the goods files a claim with you within the required time period, and follows the required rules. You have absolutely no defense so begrudgingly you agree to the claim and prepare to pay.
However "No-Brains Load Brokerage Inc." gets their nose into the situation and decrees they will not pay you for the transportation because you damaged the freight. What do you do?
KEEP YOUR F**KING MOUTH SHUT !!!!!!!!!!!!!
Until you can show a paid-in-full invoice for the transportation of the goods, whether they are damaged or not, you are under no obligation to pay the damage claim. Every court in North America will support you on that decision. It does not matter that the customer has paid the broker. You, the carrier, have not been paid, and subsequently have no obligation to satisfy the claim.So, me personally, I love brokers that put right in their contracts that in the event of a cargo claim they are going to withhold payment of your account. Thank you very much for contracting me out of having to pay cargo claims. You guys are the best
(Just be aware to never get in too deep with these brokers.)Guess who the customer goes after civilly once the claim has passed the statute of limitations ... LOL
You, the unpaid carrier, are under no obligation to willingly support the load broker in their pending law suit.
